ASSIGNED RISK AS A LOTTERY WITH A DECISION TO BE OPTIMIZED.
NAVAL MISSILE CENTER POINT MUGU CALIF
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The assigned risk program for obtaining public liability insurance in connection with driving an automobile in California and other places was studied as a lottery, with a decision. A model of the lottery and a criterion for making the decision optimally were postulated. A general mathematical solution is given for the problem. This solution in nondimensional form for two distribution functions of practical numerical interest is presented. Approximate numerical results for any realistic case can be obtained readily with the help of this illustrated solution. Author